Homework: HW2 Financial Statements Review HW Score: 6.96%, 0.7 of 10 pts core: 0 of 1 pt P2-7 (similar to) EBIT Show transcribed image text Homework: HW2 Financial Statements Review HW Score: 6.96%, 0.7 of 10 pts core: 0 of 1 pt P2-7 (similar to) EBIT
Expert Answer
Sales Revenue346000COGS133000Fixed Costs43000Selling expenses27500Depreciation45000EBIT97500Interest expense18800Taxable income78700Taxes31480Net Income47220
EBIT= Sales Revenue-COGS-Fixed costs – Selling expenses -Depreciation
Taxes= Taxable income*.40
Net Income = Taxable income – taxes
Net Income47220